Bourse showcased lackluster sentiment in the morning session, falling below the psychological barrier of 11,000 points in the morning, a level last seen in over two months since July 2023. However, the index regained its momentum as buying interest was rekindled, ultimately closing the day in green at 11,081 points, marking a gain of 46 points.
The positive sentiment was also fueled by the anticipation of a rate cut in the upcoming monetary policy review meeting. Treasury shares were particularly active in the market, driven by a decrease in the weighted average yields during today’s T-bill auction and the expectation of a rate cut. The primary driver behind the index’s performance was the banking sector, whilst diversified financials and index-heavy weights also witnessed investor interest during the day.
Notably, despite the improved sentiment, the market turnover remained relatively stable at LKR 874.0Mn, which is 34.0% lower than the monthly average turnover of LKR 1.3Bn, amidst thin trading volumes during the day. JKH and CALT led the overall turnover while JKH contributed LKR 168.2 Mn (19%) and CALT contributed LKR 149.9Mn (17%). Meanwhile, UBF dominated the market volume with 7.4Mn shares (22%) while SCAP was the second largest contributor with 2.4Mn shares (7%). Overall volume improved compared to the previous session and recorded at 33.9Mn.
Top gainers for the day were SEMB.X (+50%), BLUE (+25%), UBF (+13%), TESS (+10%) and SINH (+9%). Meanwhile, the top losers for the day were BLUE.X (-33%), CALF (-8%), CHL.X (-7%), CTHR (-6%) and CARS (-5%). Foreign investors turned net sellers amidst low participation recording a net foreign outflow of LKR 57.5Mn. Accordingly, CALT, BFL and DIAL were the top three shares to lead foreign inflow while JKH, SPEN and TKYO were the three counters recording the largest foreign outflow.
First Capital Research
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